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Committee rejects broad landfill grandfathering, hears county PILT and tax‑forfeited land sale proposals

2953481 · April 10, 2025
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Summary

The committee rejected a sweeping amendment to freeze landfill rules and considered county proposals to sell tax‑forfeited lands as a PILT revenue backstop while adopting a targeted Itasca County land sale authorization.

The committee considered several items affecting land management, county revenues and solid‑waste facilities.

Landfills: Senator Greene offered A27 to allow existing landfills to continue operating under their historical regulatory conditions rather than meet newer MPCA standards. MPCA Assistant Commissioner Kirk Koudelka testified in opposition, citing groundwater and drinking‑water risks from unlined construction and demolition landfills and saying the amendment would ‘‘freeze’’ operations and prevent future regulatory improvements. Several northern senators argued that rural counties lack viable alternatives and that closing noncompliant local landfills would create a greater environmental and logistical problem. The committee rejected A27 after debate.

PILT and tax‑forfeited lands: Senator Green also proposed A22, a draft amendment that would have allowed counties to sell up to 10% of tax‑forfeited land to generate revenue as a potential cushion against reduced payments in lieu of taxes (PILT). That amendment was withdrawn for more work and staff drafting; sponsors said they would continue working with DNR and counties. During discussion, counsel and DNR staff noted existing statutory processes (Minn. Stat. § 282.0197) that give tribes a first right to certain tax‑forfeited parcels within reservation boundaries, and DNR staff cautioned about selling lands that border public water without legislative approval.

Itasca County land sale provision: The committee adopted a smaller, targeted lands amendment (A6) authorizing Itasca County to sell certain tax‑forfeited parcels; DNR staff said the provision had been reviewed by the department and presented no known concerns.

Why it matters: Counties in some Greater Minnesota and Iron Range districts said they face budget stress if PILT is reduced; options to generate new revenue are limited in tax‑poor counties. At the same time MPCA and DNR cautioned that selling public lands or removing landfill protections could have long‑term environmental costs.

What’s next: A27 failed and A22 was withdrawn for further work. A6 (Itasca County sales language) was adopted into SF2077. Sponsors said they will continue negotiations with DNR and tribal governments on any tax‑forfeited land proposals.